(Reuters) -Continental's automotive branch plans to cut 3,000 jobs in its research and development segment by the end of 2026, the company said on Tuesday.

The move comes on top of 7,000 job cuts already announced by the company in a restructuring programme that has been in the works for over a year.

Continental also aims to reduce its R&D ratio to below ten percent by 2027, the company added.

Less than half of the job cuts will take place in Germany, Continental said, with sites in Babenhausen and in Frankfurt being the most affected, with a 12% and 5% reduction planned respectively, Continental said.

Further affected sites would be Ingolstadt, Regensburg and Schwalbach, the company added.

Additional measures are also to be taken at the Elekrobit and Continental Engineering Services subsidiaries, where a total of 900 people are to be laid off. Of those, 660 will be in Germany.

Europe's automotive sector is struggling with weak demand, higher production costs and competition from China, which has led many companies in the sector to announce layoffs and plant closures.